Press release BoxID: 624616 (KROMI Logistik AG)
  • KROMI Logistik AG
  • Tarpenring 11
  • 22419 Hamburg
  • Contact person
  • Janis Fischer
  • +49 (611) 205855-64

KROMI Logistik AG publishes 2012/2013 annual report

(PresseBox) (Hamburg, ) .
- Revenue up 14.2 % to EUR 59,923 thousand
- Significant operating earnings improvement (EBIT: EUR 865 thousand)
- Company targets further profitable revenue growth for FY 2013/2014

KROMI Logistik AG, the provider of end-to-end tool logistics solutions for manufacturing companies, has today published its complete report for its 2012/2013 fiscal year (as of June 30). With EUR 59,923 thousand of reported revenue (previous year: EUR 52,465 thousand), reflecting 14.2 % growth, the company continued its positive trend as planned. This growth is particularly due to the continued high production levels for existing customers, and related strong demand for tools and consumable parts, especially on the German domestic market. In parallel, KROMI also reports marked profitability growth: earnings before interest and tax (EBIT) amounted to EUR 865 thousand (previous year: EUR 168 thousand).

Pure operating earnings, which are adjusted to reflect unrealised valuation losses on currency translation differences (EUR 556 thousand) and pension provisions (EUR 107 thousand), amounted to EUR 1,528 thousand, a more than doubling compared with the previous year's result (EUR 706 thousand). KROMI reported earnings before tax (EBT) of EUR 568 thousand, following EUR 111 thousand in the prior year. After deducting EUR 541 of income taxes, consolidated net income stood at EUR 27 thousand, compared with EUR -210 in the previous year.

The continued robust order book position in the most important customer sectors supported this positive Group business trend last year. Both the general mechanical engineering sector and the precision machine tools sub-segment celebrated record results in 2012. The aerospace and automotive sectors also performed well last year. In line with revenue growth, the cost of materials was also up from EUR 39,525 thousand to EUR 45,274 thousand. The cost of materials ratio rose slightly from 75.3 % to 75.6 %. This increase is primarily due to lower margins achieved with foreign customers in the fiscal year under review. The staff cost ratio was reduced from 14.5 % to 13.3 %, by contrast. As a consequence, staff costs rose at a below-average rate from EUR 7,599 thousand to EUR 7,986 thousand. As a result of the significant growth in staff numbers over recent fiscal years, KROMI has meanwhile achieved a dimension that also allows additional new customers to be served efficiently with almost the same level of personnel coverage. Other operating expenses rose only moderately to EUR 5,813 thousand (previous year: EUR 5,591 thousand) despite the business volume growth, and currency exchange-rate differences connected with the Brazilian subsidiary.

"We further grew our revenue in the past 2012/2013, as planned. For KROMI Logistik, however, start-up investment costs are always connected with such growth, and also due to the integration of new customers. This is reflected in our financial position - which is why our earnings results require a slight delay until they move into the profit zone," is how Jörg Schubert, CEO of KROMI Logistik AG, commented on business trends. For example, on the established German market, where the company has numerous long-standing customers, KROMI is reporting a year of extremely gratifying business results, whereas revenue in its international business has not yet grown to the extent that it expected. This is primarily reflected by the continued strained situation in Southern European countries, which not only resulted in the delayed implementation of KROMI systems at new customers, but also fed through to deferrals to agreements that it plans to conclude. "To counter this, we have developed a continuous plan of measures to improve our earnings position, especially in European countries outside Germany," Schubert went on to add.

The Brazilian subsidiary achieved above-average growth rates, with revenue up 24.5 % last year. This was offset by extraordinary effects, which fed through to lower achievable gross profit margins, thereby preventing the Group from reporting positive overall results. The Managing Board nevertheless remains convinced of its Brazilian subsidiary's potential due to the prospects it offers: "The economy, the relevant market and the sales experiences that we have made to date continue to form a good basis to drive the long-term development and growth of KROMI Logistik AG," notes Jörg Schubert.

KROMI plans a further expansion of its business in the current 2013/2014 year, especially on the German domestic market and in Brazil. Offsetting this, revenues with Southern European customers are expected to be somewhat moderate due to forecast lower production levels. Given the strong revenue growth that it has achieved over recent years, KROMI Logistik is now setting its sights on more moderate growth in its target markets. "Our focus will be on enhancing profitability in this context. We are consequently assuming that we will be able to realise single-digit percentage revenue growth in the 2013/2014 fiscal year," commented CFO Uwe Pfeiffer by way of guidance. In this context, the company has already anticipated that, along with the restrained trend in Southern Europe, it can also implement targeted adjustments to its portfolio of customers and markets. "Accompanying this, we also expect a continuous improvement in our operating earnings. The economy, and consequently the production levels of our customers, will prove to be critical factors in our earnings growth. If these perform positively, we aim for further EBIT growth as part of our gradual and profitable growth strategy. As a consequence, the EBIT margin will prospectively remain within the low to mid single-digit percentage range," Pfeiffer added by way of conclusion.

Over the course of the day, KROMI Logistik AG will make its full IFRS consolidated financial statements for the 2012/2013 fiscal year available for downloading on its website at within the Investor Relations area.